Cattleman says review industry

THE NSW Farmers Association has called for a review of pricing in the meat industry, citing a disparity between the price paid at the farm-gate and the retail price.

But a local producer says the call misses the point and the industry needs first to look at its own internal structures.

Chairman of the association’s cattle committee, Richard Chamen, made the call following a vote at the association’s national conference in Sydney.

He said the retailer had by far the largest margin in the supply chain to the consumer and farmers were worried retailer margins would increase as supermarkets increased their dominance in the market.

But Vince Ptolemy, who runs beef cattle on his property at Wiangaree, north of Kyogle, said while the price paid to farmers was problematic, there was duplication in the peak bodies and that producers did not get value for the money they contributed.

“The price that we get at the gate is disastrous and completely out of touch with costs, but we need democracy and accountability and transparency (in our peak bodies),” Mr Ptolemy said.

“Get those three sorted out and the other problems will solve themselves.”

The money trail

Retailer: receives about 40% of the total value of the product, while contributing about 20% of total costs.

Producer: receives about 20% of the total value, while contributing about 25% of total costs.